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Revenue- and Profit-Maximising Price: The Markup Rule

Lesson 5 of 815 minLab

This lesson is part of the course

In this lesson

You find the revenue- and the profit-maximising price of the House Blend on a linear demand line, confirm the markup rule (Lerner index = −1 ÷ e) and apply it to a constant-elasticity model.

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Lessons in this course

  1. Arc vs Point Elasticity from Real Price ChangesLab14 min Locked
  2. Log-Log Regression: Elasticity as a SlopeLab16 min Locked
  3. Controlling for Promotions & Seasonality with LINESTLab18 min Locked
  4. Cross-Price Elasticity: Substitutes and CompetitorsLab16 min Locked
  5. Revenue- and Profit-Maximising Price: The Markup RuleLab15 min Locked
  6. Demand Curve & Profit Curve: Finding the PeakLab16 min Locked
  7. Segment Elasticities: Online vs StoreLab15 min Locked
  8. Price Test Design & Reading the ResultsLab18 min Locked